Between June 2017 and June 2018, trucking transportation costs in the United States increased 7.7 percent. Steel, aluminum, and copper were all up more than 10 percent. Wheat prices climbed more than 20 percent, and food processors paid 13 percent more for chickens. Yet in many cases, rising costs for businesses were not reflected in the prices paid by consumers. Finished appliances were up only 1.1 percent over the same period; food prices increased just 1.4 percent. Companies including Sysco, Procter & Gamble, and Unilever all have reported difficulty raising prices in the U.S. market.

How long will that last? Overall, the prices producers pay for inputs, as measured by components of the Bureau of Labor Statistics' Producer Price Index (PPI), have been outpacing consumer prices for more than a year (see chart below), which had led some observers to predict that more rapid inflation is imminent. But while the PPI does paint a picture of the costs facing various...

Research staff regularly monitors the national economy, helping the Richmond Fed grasp current conditions and their implications for monetary policy. Updated weekly, the following data is part of the information presented during policy discussions and meetings with our board of directors.

August 26, 2021

Firms in the Carolinas reported improved activity, overall, in August, according to the most recent survey from the Federal Reserve Bank of Richmond. The general business conditions index and the sales index declined but remained positive — going from 28 and 26 in July to 4 and 19 in August, respectively — indicating continued growth. Firms also reported increased capital spending and were optimistic that conditions would improve in the coming months.

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In this Economic Brief, we give an overview of the changes that have taken place in the unemployment insurance system during the last two severe economic episodes: the Great Recession and the COVID-19 pandemic. We discuss how unemployment benefits supported households' consumer spending and whether it slowed labor market recovery.

Many employers changed their work arrangements during 2020 in response to the COVID-19 pandemic. In particular, the number of people working from home increased substantially. But as we'll see in this post, there is some discrepancy between our two main sources of information about this labor market development.

Sunayna Tuteja, the Federal Reserve’s chief innovation officer, gives her first interview since taking the post, offering insight into the Fed and what it takes to move from the private sector into government.

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Show Notes:

The Federal Reserve is a “decentralized” central bank, with both a government component — the Board of Governors in Washington, D.C. — and an independent component with 12 regional Reserve Banks spread across the country, including the Richmond Fed. Together with the Board of Governors, we’re working together to support a healthy economy.

The Richmond Fed serves the public and communities across the Fifth Federal Reserve District — including the Carolinas, Maryland, Virginia, West Virginia and our nation’s capital.

We often say that our work at the Richmond Fed impacts everyday people every day. For example, we play a role in things like ensuring ATMs have the cash you need. We also work to promote stable prices — so you can better plan for your major financial decisions — and offer programs and resources to help you learn about personal finance and how the economy works. And that’s just to name a few!

As part of the nation’s central bank, our job is to...

The Richmond Fed’s Community Conversations program visited Asheville, N.C. recently to learn what has helped industries in the region continue to thrive during the pandemic.

From roundtable discussions to one-on-one visits with business and community leaders, Richmond Fed President Tom Barkin and Regional Executive for North Carolina and South Carolina Matthew Martin, came away with insight about the strategic thinking and pivots that have shored up the city’s infrastructure and business community over the past 18 months.

“Asheville is heavily dependent on tourism and saw significant impacts from Covid last year,” Martin said. “They are seeing a strong rebound this year and retain all those qualities that have always made it a desirable place to live or visit.”

According to business leaders in the Outdoor Outfitter industry, demand has remained positive for the bicycle parts, tents and other outdoor products they offer; and while many industries are...

Some observers have recently voiced concern that Fed activities in the areas of climate change and inequality may put the institution at risk. In a forthcoming Duke Law Journal article, for instance, Christina Parajon Skinner of the University of Pennsylvania’s Wharton School argues that the Fed must avoid the temptation to engage in "central bank activism" by pushing its powers beyond the text and purpose of its legal mandate to address "immediate public policy problems" such as climate change and economic inequality. She cautions, "Activism undermines the legitimacy of central bank authority, erodes its political independence, and ultimately renders a weaker central bank." In a recent Wall Street Journal op-ed, Michael Belongia of the University of Mississippi and Peter Ireland of Boston College voiced similar concerns about Fed activities in the area of income inequality.

These are points that I as a central banker take to heart. The Fed’s mandate is, indeed,...

Research staff regularly monitors the national economy, helping the Richmond Fed grasp current conditions and their implications for monetary policy. Updated weekly, the following data is part of the information presented during policy discussions and meetings with our board of directors.

You can add location information to your Tweets, such as your city or precise location, from the web and via third-party applications. You always have the option to delete your Tweet location history. Learn more

August 24, 2021

Fifth District manufacturing activity improved in August, according to the most recent survey from the Federal Reserve Bank of Richmond. The composite index declined from 27 in July to 9 in August but remained in expansionary territory, as all three component indexes — shipments, new orders, and employment — decreased but remained positive. However, several manufacturers reported deteriorating local business conditions. Survey contacts also noted that lead times continued to increase and inventories remained low. Overall, they were optimistic that conditions would improve in the next six months.

In this Economic Brief, we give an overview of the changes that have taken place in the unemployment insurance system during the last two severe economic episodes: the Great Recession and the COVID-19 pandemic. We discuss how unemployment benefits supported households' consumer spending and whether it slowed labor market recovery.

Businesses with no employees other than the owner often turned to personal funds in response to financial challenges during the pandemic. These nonemployers were less likely than employer firms to seek pandemic-related emergency funding and less likely to be approved.